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Decentralization Measures Revisited

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Abstract

The first goal of this paper is to develop a taxonomy of decentralization measures showing their relationship to the primary theoretical aspects of decentralization and how the different measures are related to each other. The second goal of the paper is to argue convincingly that from an empirical analysis perspective the aggregation of those distinct dimensions of decentralization into a single indicator inevitably leads to a loss of information and that a preferable approach in multivariate frameworks is to enter these distinct aspects of decentralization in the regression analysis separately in the most flexible functional form possible.

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File URL: http://icepp.gsu.edu/sites/default/files/documents/icepp/wp/ispwp0913.pdf
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Bibliographic Info

Paper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0913.

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Length: 38 pages
Date of creation: 01 Aug 2009
Date of revision:
Handle: RePEc:ays:ispwps:paper0913

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Keywords: Decentralization; Taxonomy of decentralization; measures of decentralization;

This paper has been announced in the following NEP Reports:

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Cited by:
  1. Anping Chen & Nicolaas Groenewold, 2011. "The National and Regional Effects of Fiscal Decentralisation in China," Economics Discussion / Working Papers 11-18, The University of Western Australia, Department of Economics.
  2. Neyapti, Bilin, 2013. "Fiscal decentralization, fiscal rules and fiscal discipline," Economics Letters, Elsevier, vol. 121(3), pages 528-532.
  3. Alexander Libman, 2012. "Sub-national political regimes and asymmetric fiscal decentralization," Constitutional Political Economy, Springer, vol. 23(4), pages 302-336, December.
  4. Gu, Gyun Cheol, 2012. "Developing Composite Indicators for Fiscal Decentralization: Which Is The Best Measure For Whom?," MPRA Paper 43032, University Library of Munich, Germany.
  5. Libman, Alexander, 2010. "Constitutions, regulations, and taxes: Contradictions of different aspects of decentralization," Frankfurt School - Working Paper Series 138, Frankfurt School of Finance and Management.
  6. Baja Daza, Gover & Villarroel Böhrt, Sergio & Zavaleta Castellón, David, 2012. "Diseño institucional e incentivos implicitos en la descentralización Boliviana (1994-2008)
    [Institutional design and implicit incentives in Bolivia's decentralization model (1994-2008)]
    ," MPRA Paper 48598, University Library of Munich, Germany.

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